[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 454 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 454

 To amend the Internal Revenue Code of 1986 to provide that the credit 
  for producing fuel from a nonconventional source shall apply to gas 
     produced onshore from a formation more than 15,000 feet deep.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2005

 Mr. Cole of Oklahoma (for himself, Mr. Wilson of South Carolina, Mr. 
Jindal, Mr. Lucas, Mr. Sullivan, Mr. Terry, Mr. Boren, Mr. Pearce, Mr. 
  Peterson of Pennsylvania, Mr. Culberson, Mr. Nunes, Mr. Renzi, Mr. 
  Alexander, Mr. Thornberry, Mr. Baker, Mr. Rehberg, and Mrs. Capito) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide that the credit 
  for producing fuel from a nonconventional source shall apply to gas 
     produced onshore from a formation more than 15,000 feet deep.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Natural Gas Production Act of 
2005''.

SEC. 2. CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCE TO APPLY 
              TO GAS PRODUCED ONSHORE FROM FORMATIONS MORE THAN 15,000 
              FEET DEEP.

    (a) In General.--Subparagraph (B) of section 29(c)(1) of the 
Internal Revenue Code of 1986 (defining qualified fuels) is amended by 
striking ``or'' at the end of clause (i), by striking ``and'' at the 
end of clause (ii) and inserting ``or'', and by inserting after clause 
(ii) the following new clause:
                            ``(iii) an onshore well from a formation 
                        more than 15,000 feet deep, and''.
    (b) Eligible Wells.--Section 29 of such Code is amended by adding 
at the end the following new subsection:
    ``(h) Eligible Deep Gas Wells.--In the case of a well producing 
qualified fuel described in subsection (B)(iii)--
            ``(1) for purposes of subsection (f)(1)(A), such well shall 
        be treated as drilled before January 1, 1993, if such well is 
        drilled after the date of the enactment of this subsection, and
            ``(2) subsection (f)(2) shall not apply.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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